U.S. lawmakers ask for security check on Chinese battery maker Gotion

The governors of Michigan and Illinois have revealed plans for Gotion to establish electric vehicle (EV) plants in their states, promising thousands of jobs. However, Republican Senator Marco Rubio and GOP representatives from these states have expressed concerns about Gotion’s ties to China’s Communist Party. They have urged the Committee on Foreign Investment in the United States (CFIUS) to review these connections.

The lawmakers emphasized that despite Germany’s Volkswagen AG being a major shareholder of Gotion’s parent company, Gotion High-Tech, China maintained effective control through various individual shareholders, including the company’s founder and his son, who are members of CCP organizations.

Most top shareholders of Gotion High-Tech are linked to Chinese government entities, and the company’s bylaws commit to implementing the major strategic decisions of the party.

Given President Joe Biden’s recognition of electric vehicles and batteries as critical parts of transportation infrastructure, the lawmakers stressed the necessity of triggering a review and potentially divesting Gotion High-Tech, particularly if CCP control is confirmed.

They underlined the importance of not allowing the CCP to control facilities that produce batteries critical for the U.S., especially with significant taxpayer-funded subsidies.

The concerns are part of wider scrutiny regarding the influence of Chinese entities in the U.S. EV and battery industry, with inquiries extending to companies like Tesla and Ford Motor.

By QUATRO Strategies International Inc.

QUATRO Strategies International Inc. is the leading business insights and corporate strategy company based in Toronto, Ontario. Through our unique services, we counsel our clients on their key strategic issues, leveraging our deep industry expertise and using analytical rigor to help them make informed decisions to establish a competitive edge in the marketplace.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

China’s Gotion finds local partner to build EV battery plant in Slovakia

China’s Gotion High Tech and its Slovak partner InoBat have formalized plans to construct an electric vehicle (EV) battery plant in Slovakia, according to a memorandum of understanding signed by the two companies. This joint venture, named Gotion InoBat Batteries, is slated to…

European Commission proposes 1.5 billion euro initiative to boost defense procurement

Top European Union officials have unveiled ambitious plans to bolster the continent’s arms industry, citing Russia’s war in Ukraine as a catalyst for increased cooperation among member countries. The European Commission proposed a 1.5 billion euros ($1.63 billion) initiative aimed at incentivizing…

China’s iron ore import demand plateaus, signaling shift in global market

China’s peak demand for imported iron ore signifies a significant shift in the global iron ore market dynamics. As the world’s largest steel producer and iron ore importer, China’s trends heavily influence the industry. In 2023, China imported a record 1.18 billion metric tons of iron ore, but the demand has remained…

Stay informed

error: Content is protected !!